(Government) Pension-Insurance Arm Has $8.8 Billion Deficit

[hatrack]

updated: 10/14/2003 08:52 PM

"Finances at the government's pension-insurance program deteriorated last summer, with its deficit reaching a record $8.8 billion as of Aug. 31, the agency's executive director told Congress on Tuesday.

The cash-strapped Pension Benefit Guaranty Corp., or PBGC, earlier had reported a deficit of $5.7 billion through July.

PBGC is funded with premiums paid by companies that sponsor pension plans. It gets no tax money.

The private pension system is underfunded by more than $350 billion, the agency estimates."

EDIT/END

St. Louis Post-Dispatch

[papau]

1. The new interest rate for Pension calcs bill will hurt the PBGC

as companies will pay less in premiums to the PBGC.

Not that Bush or the GOP care.